Deferred Annuity

Perpetuity

Period of Deferment

FVDOA Pmt * ((1+i)^(n) -1)/i

Find the future value of an annuity of P1,000 payable at the end of each quarter for 6 payments. The interest ra

Pmt 1,000
i .06/4
n 6
d 2 0

6229.55

6229.551

1)What is the future value of 20 semi-annual payments of P150,000 each made at the end of each 6 months wh

Pmt 150,000
i .10/2
n 20

4959893.11543326

Pmt
n
i

PV DOA

Find the present value of an annuity of P1,000 payable at the end of each quarter for six payments. The interest

Pmt 1,000
n 6
i .06/4
 d 2
5530.04

5530.0416564102

2)If P40,000 quarterly payments were made at the end of 3 years for 10 times, what is its value today if the inte

Pmt 40,000
n 10
i .12/4
d 11

246496.000919599

Pmt

PVDOA 246496.000919599
n 10
i .12/4
d 11

40000

n?
Interpolation
High-Low Method
0.1 266813.6
0.11 256435.1
0.12 246496

2)If P40,000 quarterly payments were made at the end of 3 years for 10 times, what is its value today if the inte

0.12 246496 High

0.13 236976.3 Low
0.1241 242543.3
0.124 242638.9

High-x x-Low
High-Low High-Low

3857.112 5662.577
9519.688 9519.688
0.405172 0.594828

12.40517 12.40517
er for 6 payments. The interest rate is 6% compounded quarterly. The first payment is due at the end of 9 months

3months 6 months 9 months

1,000

d = 3rd quarter - 1 quarter

d = 2 quarters

e at the end of each 6 months when the first payment is made at the end of 1 and a half years if money is worth 10%.

ter for six payments. The interest rate is 6% compounded quarterly. The first payment is due at the end of nine months

0 3months 6 months 9 months

 9
3

3
1

what is its value today if the interest rate is 12%.

3 years
12

d 11
 PVDOA 246496
n ? 10
i .12/4
d 11
pmt 40,000

PVDOA 246496
n 10
i ?
d 11
pmt 40,000

what is its value today if the interest rate is 12.4%.

PVDOA 242638.9 x
n 10
i ?
d 11
pmt 40,000
FVDAD Pmt * (((1+i)^(n) -1)/i )* (1+i)

1)What is the future value of 20 semi-annual payments of P150,000 each made at the beginning of each 6 months w

Pmt 150,000
i .10/2
n 20
d 3 d

5207888

pmt
n
i

PVDAD

2)If P40,000 quarterly payments were made at the lapse of 3 years for 10 times every beginning of the period, wha

Pmt 40,000
n 10
i .12/4 d 12
d 12

246496
PVDAD 246496
n 10
i .12/4
d 12

40000

PVDAD
n
i
d
Pmt
Interpolation PVDAD
High-Low Method n
0.1 266813.6 i
0.11 256435.1 d
0.12 246496 Pmt
e beginning of each 6 months when the first payment is made at the lapse of 1 and a half years if money is worth 10%.

beginning of the period, what is its value today if the interest rate is 12%.
 246496
? 10
.12/4
12
40000
 246496
10
? 0.12
12
40000